How High Can Prices Go?

For 62 straight months, Southern California home prices have increased. Five years ago, a median-priced condo in Orange County was around $280,000, about 76% less than today’s prices.
A report from Jim Doti and economists at Chapman University think Orange Country housing is in bubble territory, but is not in immediate danger of bursting. A report from Mark Schniepp of the California Forecast also sees no bubble yet. The critical lack of supply still ensures a quick sale of existing inventory.
There is still record low unemployment, which in turn fuels wage increases. The current housing market is not overheated, with speculative real estate purchases and easy mortgage credit, as was prevalent a decade ago.
Are we in a bubble? Economic analysts and real estate professionals are trying to determine the answer to this question.
Some economists and industry analysts were asked about future home prices in the region. Among their answers:
– Southern California home prices are not about to drop. They believe that prices will continue to rise for 2 more years, and possibly longer.
– The market is not in a bubble yet – though speculation is increasing on the subject.
– If you are thinking of buying a home, now is still the time to act, provided you are not overextended and plan to own for a while. Interest rates are still low. Though it is more expensive to buy today then a few years ago, home prices are still projected to go up, and possible increases in interest rates will increase the cost of owning later. “You ‘re most likely seeing an increase of 10% or 12% in your mortgage payment” if you wait, stated Oscar Wei, a senior economist for C.A.R.
Factors that Determine Your Property’s Value
~ Location
~ Age
~ Condition of Home
~ Upgrades/Improvements
~ Environment
~ Market Condition

Posted on July 10, 2017 at 10:33 am
Nancy Low | Category: Buyers, Events, News, Sellers

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